Wholesaler · Louisville, KY · Member since 2015 · 8 posts · 0 votes
Im able to buy a 30,000 rental with tenant. Due to not approved for a loan to begin with, if I paid cash, what is the strategy to use my equity for buying the next rental and not have my $ tied up in one property. My income is limited annually because of disability benefits given for medical issues, but the max allowed to make is 13,000 yearly. My plans are to buy rentals for more monthly income and was hoping to finance in some way to buy and hold more. Please inform me of any advice anyone may have. Thank you in advance.
Investor/Consultant · Sacramento, CA · Member since 2011 · 175 posts · 41 votes
10y
One way would be to get an equity line of credit. Assuming there is any. I was able to get a $100,000 "loan" on equity line of credit almost instantly for one of my properties. But to me, they are better than a traditional loan because with a loan, you get the money, then pay it back... and then it is done and you have to repeat it all over again.
With an equity line, it is like a credit card so to speak. So when I pay it back, I can immediately use it again without having to start the process all over again and get approved. That is one way you could go to stay liquid
Wholesaler · Louisville, KY · Member since 2015 · 8 posts · 0 votes
10y
Thank you first of all for your reply. My first thoughts now are will a lender assure me an ELOC with my same circumstances to begin with? Is the ELOC deductable? And what % of the value will they give a ELOC to eventually somehow use again for the next potential deal of another cheap rental, or wholesale, etc. Also do you know how long the lender looks at ownership with cash flow to use as accounted income to help enhance my chances of approval down the road. Thanks again for your info.